Mr Dunne said the Government and NHS approval of the strategic outline case for the future of Royal Shrewsbury Hospital and Princess Royal Hospital Telford, was a key milestone.
The move paves the way for progress on the £312 million 'Future Fit' plans, also known at the 'Hospitals Transformation Programme' (HTP).
Mr Dunne also called on everyone to "get behind" the plans – which will see Shrewsbury become home to the county's sole 24-hour A&E department, along with consultant-led women and children's services, while Telford will be the centre for planned care.
He said: “It is no secret that health services in Shropshire have required improvement for some time. Significant progress has been made in several areas, but major investment and reform are required.
"The pandemic has exacerbated the problems in our local services with unacceptable ambulance waiting times, patient backlogs and slow hospital discharge through pressures on social care.
“The Hospital Transformation Plan is precisely what is needed, according to clinicians in Shropshire, to improve patient outcomes and secure the long-term sustainability of health care services in the county.
"The plan will help to address the critical challenges of patient flow, cancellations and staff recruitment.
"The confirmation by NHS England and the Department for Health of the strategic outline case is excellent news that brings the county a big step closer to being able to invest the £312 million capital programme already approved by the Conservative Government."
He added: “The trust are now preparing the next phase of more detailed plans to deliver this massive significant investment in Shropshire health services. I am assured that the latest plan will also improve community and primary care integration across the county.
"We all need to get behind this project to help modernise NHS services in Shropshire.”